UND GRETEL – Growth potential for the D2C brand

Identifying growth potential for the D2C brand

D2C companies such as UND GRETEL acquire new customers through targeted digital marketing efforts and then aim to build recurring revenue through loyal, returning customers.

With business models like these, a large share of growth potential lies in optimizing digital marketing and creating a self-reinforcing cycle. This approach is commonly referred to as growth hacking based on a flywheel model.

Online sales are also increasing steadily for traditional companies compared to brick-and-mortar retail. If click costs (CPC, cost per click, or CPA, cost per action) and customer acquisition costs (CAC, customer acquisition costs) are optimized, revenue can grow more cost-effectively.

This is especially important given the sharp rise in CPC across nearly all channels in recent years. Identifying and leveraging cost-saving potential has therefore become particularly valuable. Put simply, more revenue can be generated from the same marketing budget.

The UND GRETEL brand stands for premium-quality cosmetic products and enjoys a strong reputation and a high level of trust among its customers. Within the industry, the brand is also recognized as trendy and sustainable. On behalf of UND GRETEL, we analyzed selected parts of the digital business model and examined the following key question:

With a dedicated team of performance marketing experts covering SMA, SEA, and SEO, we reviewed UND GRETEL’s existing digital marketing data to identify growth potential and optimization opportunities. We then provided an initial assessment in the context of the D2C business model.

The audit data was collected and evaluated using the Google SEA (AdWords) account, the Data Studio dashboard, and the Facebook and Instagram advertising manager. In addition, we analyzed individual digital marketing disciplines, including SEA, SMA, SEO, UX/UI, and influencer marketing, and developed concrete recommendations for action.

At UND GRETEL, the share of revenue generated by returning customers is encouragingly high. However, initial customer acquisition costs are too high, which indicates significant optimization potential.

Return on ad spend (ROAS) is strong in certain individual channels. At the same time, ROAS should always be evaluated carefully as a leading metric, properly classified, and viewed in the right context. For example, it is important to consider the actual ROI after factoring in internal costs and other expenses.

When it comes to scaling the business, several factors interact to deliver stronger marketing results. Three examples are outlined below:

• 1 SMA: In social media advertising, the ad account should be monitored and tested more consistently, with closer follow-up and alignment with internal teams.
• 2. Google Ads: In the SEA space, the account should be strategically aligned for growth. Additional revenue can be generated by tapping into unused potential, for example through improved campaign structures and a modern, multi-level funnel approach.
• 3. Switch to CSS: When advertising via Google Comparison Shopping Services (CSS), selecting an external CSS partner allows brands to avoid the 20 percent Google commission. With the same budget, up to 25 percent more clicks can be generated.

Below are examples of audit components that are analyzed in varying depth depending on the specific situation and the client’s needs:

• Social media advertising audit: In-depth analysis of Meta’s ad manager (Facebook and Instagram), and potentially TikTok, LinkedIn, or Pinterest. This includes validation of campaign setups, review of tracking and technical implementation, analysis of audiences and targeting, best practices, and an overall performance assessment.
• SEA audit / Google Ads audit: Analysis of the SEA account, review of strategic direction, evaluation of branded and generic campaign setups, campaign structure, use of match types and ad extensions, ad groups and keyword-level performance, and identification of untapped growth potential.
• UX/UI audit with a focus on CRO: Expert review of content and UX/UI for both desktop and mobile. Evaluation based on defined heuristics, interaction principles, and global best practices. Identification of user-centric improvements, prioritization, and translation into requirements or user stories if needed, including a Google Lighthouse performance audit.
• SEO audit: Assessment of visibility and competitive landscape, an initial review of on-site technical SEO, execution of a preliminary SEO potential analysis within the relevant topic areas, and development of a decision framework for next steps in SEO.
• Performance analysis: Review of Google Analytics tracking with regard to proper implementation, along with an initial analysis of conversion paths and analytics data in Google Analytics and Data Studio.
• Recommendations for next steps: Summary of findings with concrete action steps, typically focused on growth-oriented marketing as the foundation for a holistic and successful digital marketing strategy, along with clearly defined opportunities to increase marketing efficiency.